Mahindra & Mahindra acquires controlling stake in SML Isuzu, to rename it SML Mahindra
Mumbai: Mahindra & Mahindra Ltd (M&M) has completed the acquisition of a 58.96% controlling stake in SML Isuzu Ltd (SML), marking a major strategic move to strengthen its presence in the medium and heavy commercial vehicle segment.
The acquisition, completed at ₹650 per share for a total investment of ₹555 crore, was made from Sumitomo Corporation and Isuzu Motors of Japan, according to a press release on Saturday.
Following this, M&M will launch a mandatory open offer for up to 26% stake held by public shareholders, as per SEBI regulations.
As part of the transition, the Board of Directors at SML has been reconstituted, with Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, appointed as Executive Chairman of SML, effective August 3, 2025. Dr. Venkat Srinivas has been named Executive Director & CEO, effective August 1, 2025.
The company is also set to be renamed ‘SML Mahindra Limited’, subject to necessary approvals from regulatory authorities and shareholders.
The acquisition marks a significant step for M&M, which currently holds a 3% market share in the over 3.5-tonne commercial vehicle segment, compared to 54.2% in the sub-3.5 tonne segment.
With this deal, M&M expects to double its market share to 6%, with plans to increase it to 10–12% by FY31 and over 20% by FY36.
Founded in 1983, SML is a well-established player in the intermediate and light commercial vehicle (ILCV) space, particularly in buses, where it commands around 16% market share.
Both appointees — Sahay and Srinivas — bring deep domain expertise and long associations with Mahindra.
Sahay, a 27-year industry veteran, has led multiple automotive and defence verticals at Mahindra.
Dr. Srinivas, with 35 years of R&D and engineering experience, has been instrumental in the development of Mahindra’s flagship commercial vehicle platforms such as Blazo, Furio, Cruzio, and Bolero Maxx Pikup.
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